3. Discuss whether land improvements used in a trade or business are eligible for cost recovery.

11. Explain how the 179 immediate expensing deduction affects the computation of MACRS cost recovery.

33. Orange Corporation acquired new office furniture on August 15, 2017, for $130,000. Orange does not elect immediate expensing under 179. Orange claims any available additional first-year depreciation. Determine Orange's cost recovery for 2017.

35. Juan acquires a new 5-year class asset on March 14, 2017, for $200,000. This is the only asset Juan acquired during the year. He does not elect immediate expensing under 179. He does not claim any available additional first-year depreciation. On July 15, 2018, Juan sells the asset.

a. Determine Juan's cost recovery for 2017. ?

b. Determine Juan's cost recovery for 2018. ?

Problems

43. On June 5, 2016, Javier Sanchez purchased and placed in service a new 7-year class asset costing $550,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2016, his business generated a net income of $945,780 before any 179 immediate expense election.

a. Determine the maximum deductions that Javier can claim with respect to this ?asset in 2016 and 2017. ?

Student: Alma Hernandez Subject: Accounting 170 Instructor: 3. Discuss whether land improvements used in a trade or business are eligible for cost recovery. 11. Explain how the 179 immediate expensing deduction affects the computation of MACRS cost recovery. 33. Orange Corporation acquired new office furniture on August 15, 2017, for $130,000. Orange does not elect immediate expensing under 179. Orange claims any available additional first-year depreciation. Determine Orange's cost recovery for 2017. a. b. 35. Juan acquires a new 5-year class asset on March 14, 2017, for $200,000. This is the only asset Juan acquired during the year. He does not elect immediate expensing under 179. He does not claim any available additional first-year depreciation. On July 15, 2018, Juan sells the asset. Determine Juan's cost recovery for 2017. Determine Juan's cost recovery for 2018. Problems 43. On June 5, 2016, Javier Sanchez purchased and placed in service a new 7-year class asset costing $550,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2016, his business generated a net income of $945,780 before any 179 immediate expense election. a. Determine the maximum deductions that Javier can claim with respect to this asset in 2016 and 2017